Ameer Randolph
The price of diesel fuel in Canada is a dynamic figure that is influenced by various factors and policies. As of June 16, 2025, the cost of diesel fuel in Canada was CAD 1.45 per liter, which is lower than the world average of USD 1.13 per liter. This price is the result of a combination of wholesale costs, retail markups, and taxes, including the federal carbon tax. The price of diesel in Canada has seen fluctuations, with a recorded minimum of CAD 0.89 in February 2016 and a maximum of CAD 2.30 in November 2022. Understanding the price of diesel fuel in Canada involves considering factors such as fuel efficiency, consumption patterns, and regional differences in taxation.
| Characteristics | Values |
|---|---|
| Current price of diesel fuel in Canada | CAD 1.45 per liter or USD 1.06 per liter |
| World average diesel price | USD 1.13 per liter |
| Average diesel price from 2015-07-13 to 2025-06-16 | CAD 1.37 per liter |
| Minimum diesel price during the above period | CAD 0.89 on 2016-02-08 |
| Maximum diesel price during the above period | CAD 2.30 on 2022-11-14 |
| Fuel prices in Canada are influenced by | North American wholesale markets at certain benchmarks, such as the New York Harbor for Toronto prices and Edmonton for Thunder Bay prices |
| Fuel prices in Canada are tracked | Weekly |
| Fuel prices in Canada are published | Every Monday |
| Fuel prices in Canada include | Taxes |
| Fuel prices in Canada are influenced by | Congestion |
| Fuel prices in Canada can be lowered by | Carpooling and ride-sharing |
| Fuel efficiency can be improved by | Driving at lower speeds, avoiding hard braking, using cruise control, and planning routes to combine multiple stops into one trip |
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What You'll Learn
Current price: CAD 1.45/litre
As of June 16, 2025, the price of diesel fuel in Canada is CAD 1.45 per litre. This price is lower than the world average of USD 1.13 per litre. The price of diesel fuel in Canada has fluctuated over the years, with a recorded minimum of CAD 0.89 in February 2016 and a maximum of CAD 2.30 in November 2022.
The cost of diesel fuel in Canada is influenced by various factors, including the price of crude oil and market dynamics in North America. Additionally, the federal government's fuel charge and carbon pricing regulations can impact the price. Retailers also influence the final price at the pump by adding a markup to the wholesale price and taxes, such as the federal carbon tax.
The price of diesel fuel can vary across different provinces and regions in Canada due to differing tax structures and wholesale market influences. For example, diesel prices in Ontario are influenced by the wholesale markets in New York Harbour, whereas prices in Thunder Bay are influenced by Edmonton's wholesale markets.
To save on fuel costs, Canadians are encouraged to practise carpooling and ride-sharing, especially in congested urban areas like Toronto. Additionally, driving habits can significantly impact fuel efficiency. Smooth acceleration, maintaining lower speeds, and using cruise control can help optimize fuel consumption and reduce costs for vehicle owners.
It's worth noting that gasoline sales in Canada are subject to the Goods and Services Tax (GST) and excise tax, which can further impact the overall cost of fuel for consumers. By following fuel-efficient driving tips and staying informed about fuel prices, Canadians can make informed choices to optimize their fuel expenses.
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Historical price data
As of June 16, 2025, the price of diesel fuel in Canada is CAD 1.45 per liter or USD 1.06 per liter. The world average diesel price is USD 1.13 per liter.
Since July 13, 2015, the average diesel price in Canada has been CAD 1.37 per liter. The price has fluctuated over the years, with a minimum of CAD 0.89 recorded on February 8, 2016, and a maximum of CAD 2.30 on November 14, 2022.
Several factors influence the price of diesel fuel in Canada. The wholesale price, which includes the costs of buying and refining crude oil into diesel, plays a significant role. Retailers then add their markup, and taxes, including the federal carbon tax, are applied to determine the final price at the pump. The government of Canada has also implemented regulations that impact fuel pricing. For instance, effective April 1, 2025, the federal fuel charge was ceased, and the requirement for provinces and territories to have a consumer-facing carbon price was removed.
The diesel prices in Canada are also influenced by North American wholesale markets at specific locations called benchmarks. For example, the New York Harbor influences prices in Toronto, while Edmonton's prices impact Thunder Bay.
The Government of Ontario tracks motor fuel prices across the province and reports its findings weekly. Historical data on fuel prices in Ontario since 1990 is available for reference.
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Provincial price variation
The price of diesel fuel in Canada varies across provinces and territories. As of June 16, 2025, the price of diesel fuel in Canada is CAD 1.45 per liter, with a historical average of CAD 1.37 per liter since July 13, 2015. The price has fluctuated between a minimum of CAD 0.89 in February 2016 and a maximum of CAD 2.30 in November 2022.
Several factors influence the variation in diesel prices across Canadian provinces. Firstly, the wholesale price of diesel is influenced by the cost of crude oil and the refining process. The wholesale price serves as a base for retailers, who then add their markup, taxes, and other charges to determine the final price at the pump.
The federal government's fuel charge policies and carbon pricing regulations also impact diesel prices across the country. As of April 1, 2025, the federal fuel charge was ceased, and provinces are no longer required to have a consumer-facing carbon price. These policy changes can lead to variations in diesel prices between provinces.
Additionally, the demand and consumption patterns within each province can affect pricing. For example, Ontario and Quebec, which account for about 55% of gasoline consumed in Canada, may experience different pricing dynamics compared to less populous provinces.
The method of distribution and retail markup can also vary across provinces. Some provinces may have a stronger influence from specific North American wholesale markets or benchmarks. For instance, Toronto's diesel prices may be influenced by the New York Harbor benchmark, while Thunder Bay's prices might be impacted by Edmonton's wholesale market.
Furthermore, taxes and excise duties can vary between provinces, contributing to price differences. All gasoline sales in Canada are subject to the Goods and Services Tax (GST) and an excise tax, but the specific rates may differ across provinces and even within different regions of the same province.
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Wholesale price determinants
The wholesale price of diesel fuel in Canada is influenced by various factors, including the cost of crude oil, production and distribution costs, market demand, and government regulations.
Crude oil costs form the basis of diesel fuel prices. The price of crude oil is influenced by global supply and demand dynamics and can fluctuate due to various economic, political, and geopolitical factors. The quality of crude oil also plays a role, with lighter crude oils generally commanding a higher price.
Production and distribution costs include the expenses incurred in refining crude oil into diesel fuel, as well as transportation and storage costs. These costs can vary depending on the location of refineries and distribution centres, as well as the efficiency of the production and distribution processes.
Market demand for diesel fuel can also impact wholesale prices. During periods of high demand, such as during the summer vacation season or economic growth, wholesale prices tend to increase. Conversely, during economic downturns or periods of reduced mobility (such as during the COVID-19 pandemic), demand may decrease, leading to lower wholesale prices.
Government regulations and taxes can also significantly impact diesel fuel prices in Canada. The federal government's fuel charge and carbon tax, as well as provincial and territorial taxes, can add to the wholesale price. Additionally, government policies and interventions, such as the recent cessation of the federal fuel charge, can directly influence the wholesale price of diesel fuel.
The wholesale price of diesel fuel in Canada is also influenced by North American wholesale markets at specific locations, known as benchmarks. For example, the wholesale price in Toronto is influenced by the New York Harbor benchmark, while the price in Thunder Bay is influenced by the Edmonton benchmark. The differences in wholesale prices between these trading hubs can impact the final price of diesel fuel in Canada.
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Fuel efficiency tips
As of June 16, 2025, the price of diesel fuel in Canada is CAD 1.45 per liter or USD 1.06 per liter. This is lower than the world average diesel price of USD 1.13 per liter.
Regular Maintenance
Routine inspections and servicing are essential to maintaining fuel efficiency. Regular maintenance helps identify potential issues early on, preventing them from becoming more significant problems that could reduce fuel economy.
Optimized Driving Habits
Driving habits significantly impact fuel efficiency. Gradual acceleration and deceleration are more fuel-efficient than sudden starts and stops. Maintaining a constant speed, such as when using cruise control on highways, also improves fuel efficiency. Additionally, avoiding high speeds reduces aerodynamic drag and fuel consumption.
Aerodynamic Adjustments
Aerodynamic drag, especially at higher speeds, affects fuel efficiency. Reducing drag can lead to substantial fuel savings. Trailer skirts, tail fairings, and cab roof deflectors can be installed to reduce wind resistance and streamline airflow.
Technological Upgrades
Upgrading to newer vehicle models with more fuel-efficient technologies can significantly improve fuel economy. Cylinder deactivation systems (CDS), for example, can lower fuel consumption by 4 to 10%.
Keep the Fuel System Clean
Using diesel fuel additives helps clean the fuel system, improving performance and ensuring complete fuel combustion, which reduces fuel wastage. A clean fuel system also enhances engine power and reduces harmful emissions.
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Frequently asked questions
The price of diesel fuel in Canada was CAD 1.45 per liter or USD 1.06 per liter on June 16, 2025.
The federal fuel charge in Canada was removed effective April 1, 2025, by the Government of Canada.
All diesel fuel sales in Canada are subject to GST (Goods and Services Tax) and an excise tax, which vary by province and region.
The average pump price of diesel fuel in Toronto, Canada, is currently unavailable. However, data from 1990 onwards can be accessed.
To reduce diesel fuel costs in Canada, you can follow fuel-efficient driving tips such as avoiding hard acceleration and braking, using cruise control, and planning your route to combine multiple stops into one trip.
